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- Neometals has signed an MOU with a German company, SMS Group
- Together, the companies will fund and commercialise Neometals’ recycling technology for lithium batteries
- The technology recycles scrapped lithium-ion batteries to produce high-purity chemicals for the growing battery market
- Eventually, Neometals and SMS will form a joint venture to design and construct a demonstration plant to showcase the recycling technology
- Neometals’ shares have gone down a slight 2.50 per cent, with shares trading at 19.5 cents apiece
Neometals has signed a deal with SMS Group for Neometals’ lithium-ion battery recycling technology.
SMS is a well-regarded German company with a global footprint and renowned capabilities in design, construction and operation of metallurgical plant and machinery.
“Neometals is delighted to have agreed on formal collaboration terms with SMS. SMS is a very well-respected name, particularly in Europe which is expected to be home to half the world’s battery mega-factories outside of China,” Neometals Managing Director Chris Reed said.
Neometals will grant SMS an exclusive due diligence period to evaluate the results of Neometals’ Pilot Trial, which is in its final stages.
Following this, the parties will form a 50:50 joint venture for Recycling Technology.
Commercialising activities include the design and operation of a 2-tonne per day demonstration-scale plant at SMS sites in Germany and Austria. This phase will run at the same time as an engineering cost study to generate cost estimates and market evaluation.
The company’s Recycling Technology is a proprietary process to recycle scrapped and used lithium-ion batteries to recover cobalt, lithium, aluminium, nickel, manganese, copper and iron to tap into the lithium battery market.
On June 4 2019, Neometals reported positive results from a scoping study.
“For the SMS group, entering into a joint venture with Neometals for the demonstration and commercialisation of its technology is a logical move towards quickly capturing a strong position in the value chain of the fast-growing lithium-ion battery market,” SMS Group Director Herbert Weissenbaeck said.
The MoU validates the importance of Neometals’ Recycling Technology and innovative business model.
Once the commercialisation activities are complete, a final investment decision will be considered to construct the first lithium-ion battery recycling plant.
Neometals will contribute its technical and commercial expertise as well as its Recycling Technology. SMS will contribute its engineering design, fabrication, operation and maintenance of future recycling plants.
Additionally, SMS will obtain debt financing for no less than 50 per cent of the required capital expenditure. The remaining equity needed would be equally contributed as would efforts to secure feed supply and off-take agreements.
“We have familiarised ourselves with Neometals’ process, recognise the results of its R&D and are confident that it will provide a solid, environmentally friendly, economically attractive basis for advanced battery recycling solutions,” Herbert continued.
Neometals’ shares have gone down a slight 2.50 per cent, with shares trading at 19.5 cents apiece as at 1:09 pm AEDT.
